Your Guide to Off-Plan Property in Dubai
Dubai’s property market shines with amazing off-plan options. But before you dive in, understanding the legalities is key. This guide by Strada unveils the laws surrounding off-plan investments in Dubai, so you can make informed decisions.
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Safeguarding Your Investment
Dubai’s off-plan market is built on rules that protect both investors and developers. The Real Estate Regulatory Agency (RERA) and the Dubai Land Department (DLD) are the main players, ensuring everything is fair and transparent throughout the process.
The Oqood System: Your Safety Net
This secure electronic system, called Oqood, safeguards your rights. It tracks every detail of your purchase, from payment plans to how the project is progressing.
What Happens if Someone Doesn’t Follow the Rules?
The law has clear steps if someone misses payments or doesn’t meet their obligations. If a buyer stops paying, the developer must inform the DLD and try to resolve the issue amicably. RERA can then help settle any disputes and ensure a fair outcome.
For Developers: Completion Stages
The law also protects developers if buyers don’t follow the agreement. Depending on how much of the project is complete, developers have different rights. These include keeping some of the money paid or asking the DLD to sell the property at auction.
Important Points Depending on Completion
- Project 80% or More Complete: Developers can keep the agreement, claim the remaining balance, or auction the property.
- Project 60-80% Complete: Developers can keep 40% of the property value and refund the rest within a year.
- Project Below 60% Complete: Developers can terminate the agreement and keep 25% of the value, but must return the rest within a set timeframe.
- Project Not Started (Due to Unforeseen Circumstances): Developers can terminate the contract, keep 30% of the payment, and return the rest within a set timeframe.
Project Cancellation by RERA
If RERA cancels a project due to delays, developers must refund buyers according to the law.
Transparency Throughout
The law says all off-plan transactions must be registered with the DLD’s Interim Property Register, ensuring everything is transparent.
Before You Invest: Key Requirements
- Land & Approval: Developers must own the land and have the necessary approvals before selling off-plan.
- Reasonable Fees: Developers can only charge approved admin costs to protect buyers from being exploited.
- Completion & Registration: Once finished, developers must register the property and transfer ownership to buyers.
- Certified Brokers: Brokers involved in off-plan marketing must be certified and registered with the DLD.
- Contract Approval: Private sale contracts for off-plan properties need approval from the relevant authorities.
Strada: Your Dubai Off-Plan Partner
At Strada, we believe in empowering investors with knowledge. With our expertise and focus on transparency, we’ll guide to Off-Plan Property in Dubai , so you can navigate this exciting market with confidence.
Contact Strada today and unlock the potential of Dubai’s off-plan real estate
